Section 1. K.S.A. 1995 Supp. 12-1770 is hereby amended to read
as follows: 12-1770. It is hereby declared to be the purpose of
this act to promote, stimulate and develop the general and economic
welfare of the state of Kansas and its communities and to assist in
the development and redevelopment of central business
district areas of cities, blighted areas and
deteriorating areas which are not yet blighted, but may be so in
the future located within cities, environmentally contaminated
areas located within and without cities and enterprise zones
located within cities, thus promoting the general welfare of the
citizens of this state, by authorizing cities to acquire certain
property and to issue special obligation bonds and full faith and
credit tax increment bonds for the financing of rede- velopment
projects. It is further found and declared that the powers con-
ferred by this act are for public uses and purposes for which
public money may be expended and the power of eminent domain
exercised. The ne- cessity in the public interest for the
provisions of this act is hereby de- clared as a matter of
legislative determination.

Sec. 2. K.S.A. 1995 Supp. 12-1771 is hereby amended to read as
follows: 12-1771. (a) No city shall exercise any of the powers
conferred by K.S.A. 12-1770 et seq., and amendments thereto,
unless the governing body of such city has adopted a resolution
finding that the specific project area sought to be redeveloped is
a blighted area, a conservation area or was designated prior
to July 1, 1992, as an enterprise zone pursuant to K.S.A. 12-17,110
prior to its repeal, and the conservation, development or
redevelopment of such area is necessary to promote the general and
economic welfare of such city. Enterprise zones designated prior to
July 1, 1992, may be enlarged by the city to an area not exceeding
25% of the city's land area upon a finding by the secretary of the
department of commerce and housing that a redevelopment project
proposed by the city which requires the enlargement is of statewide
importance and that it will meet the criteria specified in K.S.A.
12-1774 (a)(1)(D), and amend- ments thereto. For the purpose of
this subsection, the term ``blighted area'' means an area which:
(1) Because of the presence of a majority of the following factors,
substantially impairs or arrests the sound develop- ment and growth
of the municipality or constitutes an economic or social liability
or is a menace to the public health, safety, morals or welfare in
its present condition and use: (A) A substantial number of
deteriorated or deteriorating structures; (B) predominance of
defective or inadequate street layout; (C) unsanitary or unsafe
conditions; (D) deterioration of site improvements; (E) diversity
of ownership; (F) tax or special assessment delinquency exceeding
the fair value of the land; (G) defective or unusual conditions of
title; (H) improper subdivision or obsolete platting or land uses;
(I) the existence of conditions which endanger life or property by
fire and other causes; or (J) conditions which create economic
obsoles- cence; or (2) has been identified by any state or federal
environmental agency as being environmentally contaminated to an
extent that requires a remedial investigation, feasibility study
and remediation or other similar state or federal action; or (3)
previously was found by resolution of the governing body to be a
slum or a blighted area under K.S.A. 17-4742 et seq., and
amendments thereto.

For the purpose of this subsection, conservation area means
any im- proved area within the corporate limits of a city in which
50% or more of the structures in the area have an age of 35 years
or more, which area is not yet blighted, but may become a blighted
area due to the existence of a combination of two or more of the
following factors: (i) Dilapidation, obsolescence or deterioration
of the structures; (ii) illegal use of individual structures; (iii)
the presence of structures below minimum code standards; (iv)
building abandonment; (v) excessive vacancies; (vi) overcrowding of
structures and community facilities; or (vii) inadequate utilities
and in- frastructure. Not more than 15% of the land area of a city
may be found to be a conservation area.

(b) The powers conferred upon cities under the provisions of
K.S.A. 12-1770 et seq., and amendments thereto, shall be
exercised in central business district areas ofby cities, as determined by resolution adopted pursuant to
K.S.A. 12-1772, and amendments thereto, (1) in enterprise
zones designated prior to July 1, 1992, including any area added to
such enterprise zone after July 1, 1992, pursuant to subsection
(a), (2) in blighted areas of cities and counties described
by subsection (a)(2), (3) in conservation areas of cities,
or (4) in blighted areas of cities, as determined by
resolution adopted pursuant to K.S.A. 17-4742 et seq., and
amend- ments thereto.

(c) Within that portion of the city described in subsection (b),
the governing body of a city may establish a district to be known
as a ``rede- velopment district''. Within that portion of a city
and county described in subsection (b) excluding paragraph (3)
of subsection (b), the governing body of the city, upon written
consent of the board of county commis- sioners, may establish a
district inclusive of land outside the boundaries of the city to be
known as a ``redevelopment
district''. In all such cases, the board of county
commissioners, prior to providing written consent, shall be subject
to the same procedure for public notice and hearing as is required
of a city pursuant to subsection (d) for the establishment of a
redevelopment district. One or more redevelopment projects may be
un- dertaken by a city within a redevelopment district after such
redevelop- ment district has been established in the manner
provided by subsection (d).

(d) Any city proposing to establish a redevelopment district
shall adopt a resolution stating that the city is considering the
establishment of a redevelopment district. Such resolution
shall:

(1) Give notice that a public hearing will be held to consider
the establishment of a redevelopment district and fix the date,
hour and place of such public hearing;

(2) describe the proposed boundaries of the redevelopment
district;

(3) describe a proposed comprehensive plan that identifies all
of the proposed redevelopment project areas and that identifies in
a general manner all of the buildings and facilities that are
proposed to be con- structed or improved in each redevelopment
project area;

(4) state that a description and map of the proposed
redevelopment district are available for inspection at a time and
place designated;

(5) state that the governing body will consider findings
necessary for the establishment of a redevelopment district.

Notice shall be given as provided in subsection (c) of K.S.A.
12-1772, and amendments thereto.

(e) Upon the conclusion of the public hearing, the governing
body may adopt a resolution to make any findings required by
subsection (a) and may establish the redevelopment district by
ordinance. Such reso- lution shall contain a comprehensive plan
that identifies all of the pro- posed redevelopment project areas
and identifies in a general manner all of the buildings and
facilities that are proposed to be constructed or im- proved in
each redevelopment project area. The boundaries of such dis- trict
shall not include any area not designated in the notice required by
subsection (d). Any addition of area to the redevelopment district
or any substantial change to the comprehensive plan shall be
subject to the same procedure for public notice and hearing as is
required for the establish- ment of the district.

(f) No privately owned property subject to ad valorem taxes
shall be acquired and redeveloped under the provisions of K.S.A.
12-1770 et seq., and amendments thereto, if the board of
county commissioners or the board of education levying taxes on
such property determines by reso- lution adopted within 30 days
following the conclusion of the hearing for the establishment of
the redevelopment district required by subsection (d) that the
proposed redevelopment district will have an adverse effect on such
county or school district.

(g) Any redevelopment plan undertaken within the redevelopment
district may be in separate development stages. Each plan shall be
adopted according to the provisions of K.S.A. 12-1772, and
amendments thereto, and shall fix a date for completion. Except as
provided herein, any project shall be completed within
1520 years from the date of the
establishment of the redevelopment district. Projects relating to
environ- mental investigation and remediation under subsection (i)
shall be com- pleted within 20 years from the date a city enters
into a consent decree agreement with the Kansas department of
health and environment or the United States environmental
protection agency.

(h) Any increment in ad valorem property taxes resulting from a
re- development district undertaken in accordance with the
provisions of this act, shall be apportioned to a special fund for
the payment of the cost of the redevelopment project, including the
payment of principal and inter- est on any special obligation bonds
or full faith and credit tax increment bonds issued to finance such
project pursuant to this act and may be pledged to the payment of
principal and interest on such bonds. The maximum maturity on bonds
issued to finance projects pursuant to this act shall not exceed 20
years. For the purposes of this act, ``increment'' means that
amount of ad valorem taxes collected from real property lo- cated
within the redevelopment district that is in excess of the amount
which is produced from such property and attributable to the
assessed valuation of such property prior to the date the
redevelopment district was established, as determined under the
provisions of K.S.A. 12-1775, and amendments thereto.

(i) The governing body of a city, in contracts entered into with
the Kansas department of health and environment or the United
States en- vironmental protection agency, may pledge increments
receivable in fu- ture years to pay costs directly relating to the
investigation and remedi- ation of environmentally contaminated
areas. The provisions in such contracts pertaining to pledging
increments in future years shall not be subject to K.S.A. 10-1101
et seq. or K.S.A. 79-2925 et seq.,
and amend- ments thereto.

(j) Before any redevelopment project is undertaken, a
comprehensive feasibility study, which shows the benefits derived
from such project will exceed the costs and that the income
therefrom will be sufficient to pay for the project shall be
prepared. Such feasibility study shall be an open public
record.

Sec. 3. K.S.A. 1995 Supp. 12-1771a is hereby amended to read as
follows: 12-1771a. (a) The governing body of a city may establish
an in- crement in ad valorem taxes using the procedure set forth in
subsection (b) for projects that are initiated upon a finding that
the area is a blighted area under subsection (a)(2) of K.S.A.
12-1771, and amendments thereto, when the following conditions
exist:

(1) The proposed district has been identified by the Kansas
depart- ment of health and environment or the United States
environmental pro- tection agency to be an environmentally
contaminated area;

(2) the city has entered into a consent decree or settlement
agree- ment or has taken action expressing an intent to enter into
a consent decree or settlement agreement with the Kansas department
of health and environment or the United States environmental
protection agency that addresses the investigation and remediation
of the environmental contamination;

(3) the consent decree or settlement agreement contains a
provision that has the effect of releasing property owners who are
not responsible for the contamination from the responsibility of
paying the response costs of the investigation and remediation of
the contamination; and

(4) the city intends to establish a redevelopment district
pursuant to K.S.A. 12-1771, and amendments thereto, to wholly
finance or partially finance the investigation and remediation of
contamination within such district.

(b) An increment established after a city has found that the
condition in subsection (a)(2) of K.S.A. 12-1771, and amendments
thereto, exists shall be set on a yearly basis. For purposes of
this section, a yearly basis shall be a calendar year. Each year's
increment shall be an amount suf- ficient to pay the direct costs
of investigation and remediation of the contaminated condition
anticipated to be incurred that year including principal and
interest due on any special obligation bonds or full faith and
credit tax increment bonds issued to finance in whole or in part
the re- mediation and investigation, costs relating to remediation
investigation and feasibility studies, operation and maintenance
expenses and other expenses relating directly to the investigation
and remediation of contam- ination. Each year's increment shall not
exceed 20% of the amount of taxes that are produced from
theby all taxing subdivisions within any currently
existing or subsequently created redevelopment district area in
the year the redevelopment district is first established,
notwithstanding that such subdivision was not required to receive
notice of the establish- ment of the district.

(c) The budget that establishes the yearly increment shall be
certified by the city to the county clerk and county treasurer no
later than August 25th, preceding the calendar year for which the
budget is being set. Funds derived from an increment established by
this section and interest on all funds derived from an increment
established by this section may be used only for projects involving
the investigation and remediation of contam- ination in the
district.

(d) The real property taxes produced by the increment
established under subsection (b) from a redevelopment district
established under the provisions of K.S.A. 12-1771, and amendments
thereto, shall be allocated and paid by the county treasurer to the
treasurer of the city and deposited in a special separate fund of
the city to pay the direct cost of investigation and remediation of
contamination in the redevelopment district. Any funds collected by
the city from parties determined to be responsible in any manner
for the contaminated condition shall be either: (1) Deposited in
the same separate special fund created hereunder, and with all
interest earned thereon, may be used only for projects involving
the investigation and remediation of contamination in the
established redevelopment dis- trict; or (2) distributed to parties
who have entered into a contract with the city to pay a portion of
investigation and remediation of the contam- ination in the
redevelopment district and the terms of such contract pro- vide
that such parties are entitled to reimbursement for a portion of
funds they have expended for such investigation and remediation of
contami- nation from the recovery of costs that are collected from
other third party responsible parties.

A redevelopment district created under the provisions of this
section shall constitute a separate taxing district. If all costs
for such investigation and remediation of contamination in the
redevelopment district have been paid and moneys remain in the
special fund, such moneys shall be remitted to each taxing
subdivision which paid moneys into the special fund on the basis of
the proportion which the total amount of moneys paid by such taxing
subdivision into the special fund bears to the total amount of all
moneys paid by all taxing subdivisions into the fund.

(e) Nothing in this section shall prevent any city from
establishing a redevelopment district for other purposes pursuant
to K.S.A. 12-1770 et seq., and amendments thereto, which may
include part or all of the real property included in the district
established under this section.

(f) Nothing in this section shall be construed to affect the
obligations of the county to annually review the fair market value
of property in accordance with procedures set by law or to affect
the right of any tax- payer to protest and appeal the appraised or
reappraised value of their property in accordance with procedures
set forth by law.

(g) Commencing with the regular session of the legislature in
1993, each city that establishes a redevelopment district under
this section shall make a status report on a biennial basis to the
standing committee on commerce of the senate and the standing
committee on economic de- velopment of the house of representatives
during the month of January. The status report shall contain
information on the status of the investi- gation and remediation of
contamination in the redevelopment district.

Sec. 4. K.S.A. 12-1773 is hereby amended to read as follows: 12-
1773. (a) Any city which has adopted a redevelopment plan in
accordance with the provisions of this act may purchase or
otherwise acquire real property. Upon a 2/3 vote of the members of
the governing body thereof a city may acquire by condemnation any
interest in real property, includ- ing a fee simple title thereto,
which it deems necessary for or in connec- tion with any
redevelopment plan of an area located within the redevel- opment
district. However no city shall exercise such eminent domain
power to acquire real property in a conservation area. Any such
city may exercise the power of eminent domain in the manner
provided by K.S.A. 26-501 et seq., and amendments thereto. In
addition to any compensation or damages allowed under the eminent
domain procedure act, such city shall also provide for the payment
of relocation assistance as provided in K.S.A. 12-1777, and
amendments thereto.

(b) Any property acquired by a city under the provisions of this
act may be sold or leased to any person, firm or corporation,
hereinafter referred to as a developer, in accordance with the
redevelopment plan and under such other conditions as may be agreed
upon. Such city may use the proceeds of special obligation bonds
issued under K.S.A. 12-1774, and amendments thereto, or full faith
and credit tax increment bonds issued under K.S.A. 12-1774, and
amendments thereto, or any uncom- mitted funds derived from those
sources set forth in paragraph (1) of subsection (a) of K.S.A.
12-1774, and amendments thereto, to implement the redevelopment
plan including, without limitation:

(15) all related expenses to redevelop and finance the
redevelopment project. None of the proceeds from the sale of such
bonds shall be used for the construction of buildings or other
structures to be owned by such devel- oper.

Sec. 5. K.S.A. 1995 Supp. 12-1774 is hereby amended to read as
follows: 12-1774. (a) (1) Any city shall have the power to issue
special obligation bonds to finance the undertaking of any
redevelopment project in accordance with the provisions of this
act. Such special obligation bonds shall be made payable, both as
to principal and interest:

(A) From property tax increments allocated to, and paid into a
special fund of the city under the provisions of K.S.A. 12-1775,
and amendments thereto;

(B) from revenues of the city derived from or held in connection
with the undertaking and carrying out of any redevelopment project
or projects under this act;

(C) from any private sources, contributions or other financial
assis- tance from the state or federal government;

(D) from a pledge of a portion or all of the revenue received by
the city from transient guest sales,and use and transient guest taxes collected
pursuant to K.S.A. 12-1696et seq., 79-3601
et seq., 79-3701 et seq.,and
12-187 et seq.and 12-1696et
seq., and amendments thereto, and which are collected
from taxpayers doing business within that portion of the city's
redevelopment district established pursuant to K.S.A. 12-1771, and
amendments thereto, occupied by a redevelopment project if there
first is a finding by the secretary of the
department of commerce and housing that the redevelopment
project is of statewide as well as local importance. In making such
finding, the secretary must conclude at least: (1)(i) That capital improvements costing not less than
$300,000,000 will be built in the state for such redevelopment
project,; and (2)(ii) not less than 1,500 permanent and seasonal employment
positions as defined by K.S.A. 74- 50,114, and amendments thereto,
will be created in the state by such redevelopment project;
or;

(E) (i) from a pledge of a portion or all increased revenue
received by the city from franchise fees collected from utilities
and other businesses using public right-of-way within the
redevelopment district; (ii) from a pledge of a portion or all of
the revenue received by the city from sales taxes collected
pursuant to K.S.A. 12-187, and amendments thereto; or

(E)(F) by any combination of these
methods.

The city may pledge such revenue to the repayment of such
special obligation bonds prior to, simultaneously with, or
subsequent to the is- suance of such special obligation bonds.

(2) Bonds issued under paragraph (1) of subsection (a) shall not
be general obligations of the city, nor in any event shall they
give rise to a charge against its general credit or taxing powers,
or be payable out of any funds or properties other than any of
those set forth in paragraph (1) of this subsection
(a) and such bonds shall so state on their
face.

(3) Bonds issued under the provisions of paragraph (1) of
this sub- section (a) shall be special
obligations of the city and are declared to be negotiable
instruments. They shall be executed by the mayor and clerk of the
city and sealed with the corporate seal of the city. All details
per- taining to the issuance of such special obligation bonds and
terms and conditions thereof shall be determined by ordinance of
the city. All special obligation bonds issued pursuant to this act
and all income or interest therefrom shall be exempt from all state
taxes except inheritance taxes. Such special obligation bonds shall
contain none of the recitals set forth in K.S.A. 10-112, and
amendments thereto. Such special obligation bonds shall, however,
contain the following recitals, viz., the authority under which
such special obligation bonds are issued, they are in conformity
with the provisions, restrictions and limitations thereof, and that
such special obligation bonds and the interest thereon are to be
paid from the money and revenue received as provided in paragraph
(1) of this subsec- tion (a).

(b) (1) Subject to the provisions of paragraph (2) of this
subsection, any city shall have the power to issue full faith and
credit tax increment bonds to finance the undertaking of any
redevelopment project in accor- dance with the provisions of K.S.A.
12-1770 et seq., and amendments thereto other than a project
determined by the secretary of commerce and housing to be of
statewide as well as local importance and to meet the other
criteria specified in K.S.A. 12-1774 (a)(1)(D), and amendments
thereto. Such full faith and credit tax increment bonds shall be
made payable, both as to principal and interest: (A) From the
revenue sources identified in paragraph (1)(A), (B)
and, (C), (D) and (E) of subsection
(a) or by any combination of these sources; and (B) subject to the
provisions of paragraph (2) of this subsection, from a pledge of
the city's full faith and credit to use its ad valorem taxing
authority for repayment thereof in the event all other authorized
sources of revenue are not sufficient.

(2) Except as provided in paragraph (3) of this subsection,
before the governing body of any city proposes to issue full faith
and credit tax in- crement bonds as authorized by this subsection,
the feasibility study re- quired by K.S.A. 12-1771, and amendments
thereto, shall demonstrate that the benefits derived from the
project will exceed the cost and that the income therefrom will be
sufficient to pay the costs of the project. No full faith and
credit tax increment bonds shall be issued unless the governing
body states in the resolution required by K.S.A. 12-1772, and
amendments thereto, that it may issue such bonds to finance the
proposed redevelopment project. The governing body may issue the
bonds unless within 60 days following the date of the public
hearing on the proposed redevelopment plan a protest petition
signed by 3% of the qualified voters of the city is filed with the
city clerk in accordance with the provisions of K.S.A. 25-3601
et seq., and amendments thereto. If a sufficient petition is
filed, no full faith and credit tax increment bonds shall be issued
until the issuance of the bonds is approved by a majority of the
voters voting at an election thereon. Such election shall be called
and held in the man- ner provided by the general bond law. The
failure of the voters to approve the issuance of full faith and
credit tax increment bonds shall not prevent the city from issuing
special obligation bonds in accordance with K.S.A. 12-1774, and
amendments thereto. No such election shall be held in the event the
board of county commissioners or the board of education de-
termines, as provided in K.S.A. 12-1771, and amendments thereto,
that the proposed redevelopment district will have an adverse
effect on the county or school district.

(3) As an alternative to paragraph (2) of this subsection, any
city which adopts a redevelopment plan but does not state its
intent to issue full faith and credit tax increment bonds in the
resolution required by K.S.A. 12-1772, and amendments thereto, and
has not acquired property in the redevelopment project area may
issue full faith and credit tax increment bonds if the governing
body of the city adopts a resolution stating its intent to issue
the bonds and the issuance of the bonds is approved by a majority
of the voters voting at an election thereon. Such election shall be
called and held in the manner provided by the general bond law. The
failure of the voters to approve the issuance of full faith and
credit tax increment bonds shall not prevent the city from issuing
special obligation bonds pursuant to paragraph (1) of subsection
(a). Any redevelopment plan adopted by a city prior to the
effective date of this act in accordance with K.S.A. 12-1772, and
amendments thereto, shall not be invalidated by any requirements of
this act.

(4) During the progress of any redevelopment project in which
the city's costs will be financed, in whole or in part, with the
proceeds of full faith and credit tax increment bonds, the city may
issue temporary notes in the manner provided in K.S.A. 10-123, and
amendments thereto, to pay the city's cost for the project. Such
temporary notes shall not be issued and the city shall not acquire
property in the redevelopment project area until the requirements
of paragraph (2) or (3) of this subsection, which- ever is
applicable, have been met.

(5) Full faith and credit tax increment bonds issued under this
sub- section shall be general obligations of the city and are
declared to be negotiable instruments. They shall be issued in
accordance with the gen- eral bond law. All such bonds and all
income or interest therefrom shall be exempt from all state taxes
except inheritance taxes. The amount of the full faith and credit
tax increment bonds issued and outstanding which exceeds 3% of the
assessed valuation of the city shall be within the bonded debt
limit applicable to such city.

(6) Any city issuing special obligation bonds under the
provisions of this act may refund all or part of such issue
pursuant to the provisions of K.S.A. 10-116a, and amendments
thereto.

Sec. 6. K.S.A. 12-1775 is hereby amended to read as follows: 12-
1775. (a) For the purposes of this act, the term ``taxing
subdivision'' shall include only the county, the
city and, the unified school district
and any other taxing subdivision levying real property
taxes, the territory or ju- risdiction of which includes
theany currently existing or subsequently
created redevelopment district. The term ``real property
taxes'' includes all taxes levied on an ad valorem basis upon land
and improvements thereon.

(b) All tangible taxable property located within a redevelopment
dis- trict shall be assessed and taxed for ad valorem tax purposes
pursuant to law in the same manner that such property would be
assessed and taxed if located outside such district, and all ad
valorem taxes levied on such property shall be paid to and
collected by the county treasurer in the same manner as other taxes
are paid and collected. Except as otherwise provided in this
section, the county treasurer shall distribute such taxes as may be
collected in the same manner as if such property were located
outside a redevelopment district. Each redevelopment district
established under the provisions of this act shall constitute a
separate taxing unit for the purpose of the computation and levy of
taxes.

(c) Beginning with the first payment of taxes which are levied
follow- ing the date of approval of any redevelopment district
established pur- suant to K.S.A. 12-1771, and amendments thereto,
real property taxes received by the county treasurer resulting from
taxes which are levied subject to the provisions of this act by and
for the benefit of a taxing subdivision, as herein defined, on
property located within such redevel- opment district constituting
a separate taxing unit under the provisions of this section, shall
be divided as follows:

(1) From the taxes levied each year subject to the provisions of
this act by or for each of the taxing subdivisions upon property
located within a redevelopment district constituting a separate
taxing unit under the provisions of this act, the county treasurer
first shall allocate and pay to each such taxing subdivision all of
the real property taxes collected which are produced from that
portion of the current assessed valuation of such real property
located within such separate taxing unit which is equal to the
total assessed value of such real property on the date of the
estab- lishment of the redevelopment district.

(2) Any real property taxes produced from that portion of the
current assessed valuation of real property within the
redevelopment district con- stituting a separate taxing unit under
the provisions of this section in excess of an amount equal to the
total assessed value of such real property on the effective date of
the establishment of the district shall be allocated and paid by
the county treasurer to the treasurer of the city and deposited in
a special fund of the city to pay the cost of redevelopment
projects including the payment of principal of and interest on any
special obliga- tion bonds or full faith and credit tax increment
bonds issued by such city to finance, in whole or in part, such
redevelopment project. When such obligation bonds and interest
thereon have been paid, all moneys there- after received from real
property taxes within such redevelopment district shall be
allocated and paid to the respective taxing subdivisions in the
same manner as are other ad valorem taxes. If such obligation bonds
and interest thereon have been paid before the completion of a
project, the city may continue to use such moneys for any purpose
authorized by this act until such time as the project is completed,
but for not to exceed 1520 years from the
date of the establishment of the redevelopment district.

(d) In any redevelopment plan or in the proceedings for the
issuing of any special obligation bonds or full faith and credit
tax increment bonds by the city to finance a redevelopment project,
the property tax increment portion of taxes provided for in
paragraph (2) of subsection (c) may be irrevocably pledged for the
payment of the principal of and interest on such obligation bonds,
subject to the provisions of subsection (h) of K.S.A. 12-1771, and
amendments thereto. A city may adopt a redevelopment plan in
which only a specified percentage of the tax increment realized
from taxpayers in the redevelopment district are pledged to the
redevel- opment project. The county treasurer shall allocate the
specified percent- age of the tax increment to the treasurer of the
city for deposit in the special fund of the city to finance the
cost of redevelopment projects if the city has other available
revenues and pledges the revenues to the rede- velopment project in
lieu of the tax increment. Any portion of such tax increment not
allocated to the city for the redevelopment project shall be
allocated and paid in the same manner as other ad valorem
taxes.

Sec. 7. K.S.A. 1995 Supp. 72-6431 is hereby amended to read as
follows: 72-6431. (a) The board of each district shall levy an ad
valorem tax upon the taxable tangible property of the district in
the school years specified in subsection (b) for the purpose
of:

(1) Financing that portion of the district's general fund budget
which is not financed from any other source provided by law;

(2) paying a portion of the costs of operating and maintaining
public schools in partial fulfillment of the constitutional
obligation of the legis- lature to finance the educational
interests of the state; and

(3) with respect to any redevelopment district established
prior to the effective date of this act pursuant to K.S.A. 12-1771,
and amendments thereto, paying a portion of the principal and
interest on bonds issued by cities under authority of K.S.A.
12-1774, and amendments thereto, for the financing of redevelopment
projects upon property located within the district.

(b) The tax required under subsection (a) shall be levied at a
rate of 35 mills in the 1994-95 and 1995-96 school years.

(c) The proceeds from the tax levied by a district under
authority of this section, except the proceeds of such tax levied
for the purpose of paying a portion of the principal and interest
on bonds issued by cities under authority of K.S.A. 12-1774, and
amendments thereto, for the fi- nancing of redevelopment projects
upon property located within the dis- trict, shall be deposited in
the general fund of the district.

(d) On June 1 of each year, the amount, if any, by which a
district's local effort exceeds the amount of the district's state
financial aid, as determined by the state board, shall be remitted
to the state treasurer. Upon receipt of any such remittance, the
state treasurer shall deposit the same in the state treasury to the
credit of the state school district finance fund.

(e) No district shall proceed under K.S.A. 79-1964, 79-1964a or
79- 1964b, and amendments to such sections.

Sec. 8. K.S.A. 1995 Supp. 12-17,115 is hereby amended to read as
follows: 12-17,115. As used in this act:

(a) ``Dilapidated structure'' means a residence or other
building which is in deteriorating condition by reason of
obsolescence, inadequate provision of ventilation, light, air or
structural integrity or is otherwise in a condition detrimental to
the health, safety or welfare of its inhabitants or a residence or
other building which is in deteriorating condition and because of
age, architecture, history or significance is worthy of preser-
vation.

(a)(b) ``Municipality'' means any
municipality as defined by K.S.A. 10-1101, and amendments
thereto.

(b)(c) ``Neighborhood revitalization
area'' means:

(1) An area in which there is a predominance of buildings or im-
provements which by reason of dilapidation, deterioration,
obsolescence, inadequate provision for ventilation, light, air,
sanitation, or open spaces, high density of population and
overcrowding, the existence of conditions which endanger life or
property by fire and other causes or a combination of such factors,
is conducive to ill health, transmission of disease, infant
mortality, juvenile delinquency or crime and which is detrimental
to the public health, safety or welfare;

(2) an area which by reason of the presence of a substantial
number of deteriorated or deteriorating structures, defective or
inadequate streets, incompatible land use relationships, faulty lot
layout in relation to size, adequacy, accessibility or usefulness,
unsanitary or unsafe condi- tions, deterioration of site or other
improvements, diversity of ownership, tax or special assessment
delinquency exceeding the actual value of the land, defective or
unusual conditions of title, or the existence of conditions which
endanger life or property by fire and other causes, or a
combination of such factors, substantially impairs or arrests the
sound growth of a municipality, retards the provision of housing
accommodations or consti- tutes an economic or social liability and
is detrimental to the public health, safety or welfare in its
present condition and use; or

(3) an area in which there is a predominance of buildings or
improve- ments which by reason of age, history, architecture or
significance should be preserved or restored to productive use.

(d)(e) ``Increment'' means that amount
of ad valorem taxes collected from real property located within the
neighborhood revitalization area or from dilapidated structures
outside the revitalization area that is in excess of the amount
which is produced from such property and attributable to the
assessed valuation of such property prior to the date the
neighborhood revitalization area was established or the
structure was declared dilapi- dated pursuant to this act.

Sec. 9. K.S.A. 1995 Supp. 12-17,116 is hereby amended to read as
follows: 12-17,116. The governing body of any municipality may
designate any area within such municipality as a neighborhood
revitalization area if the governing body finds that one or more of
the conditions as described in subsection (b)(c) of K.S.A. 1995 Supp. 12-17,115, and amendments
thereto, exist and that the rehabilitation, conservation or
redevelopment of the area is necessary to protect the public
health, safety or welfare of the residents of the municipality.
The governing body may declare a building outside of a
neighborhood revitalization area to be a dilapidated structure if
the structure satisfies the conditions set forth in subsection (a)
of K.S.A. 1995 Supp. 12-17,115.

Sec. 10. K.S.A. 1995 Supp. 12-17,117 is hereby amended to read
as follows: 12-17,117. (a) Prior to designating an area as a
neighborhood revitalization area or a structure to be a
dilapidated structure, the gov- erning body shall adopt a plan
for the revitalization of such area or des- ignation of a
dilapidated structure. Such plan shall include:

(1) A legal description of the real estate forming the
boundaries of the proposed area and a map depicting the existing
parcels of real estate;

(2) the existing assessed valuation of the real estate in the
proposed area, listing the land and building values separately;

(3) a list of names and addresses of the owners of record of
real estate within the area;

(4) the existing zoning classifications and district boundaries
and the existing and proposed land uses within the area;

(5) any proposals for improving or expanding municipal services
within the area including, but not limited to, transportation
facilities, wa- ter and sewage systems, refuse collection, road and
street maintenance, park and recreation facilities and police and
fire protection;

(6) a statement specifying what property is eligible for
revitalization and whether rehabilitation and additions to existing
buildings or new con- struction or both is eligible for
revitalization;

(7) the criteria to be used by the governing body to determine
what property is eligible for revitalization;

(8) the contents of an application for a rebate of property tax
incre- ments authorized by K.S.A. 1995 Supp. 12-17,118 and
amendments thereto;

(9) the procedure for submission of an application for a rebate
of property tax increments authorized by K.S.A. 1995 Supp.
12-17,118 and amendments thereto;

(10) the standards or criteria to be used when reviewing and
approv- ing applications for a rebate of property tax increments
authorized by K.S.A. 1995 Supp. 12-17,118 and amendments
thereto;

(11) a statement specifying the maximum amount and years of eli-
gibility for a rebate of property tax increments authorized by
K.S.A. 1995 Supp. 12-17,118; and

(12) any other matter deemed necessary by the governing
body.

(b) Prior to declaring a building to be a dilapidated
structure, the governing body shall do the following:

(1) Obtain a legal description of the property to be declared
dilapi- dated;

(2) determine the assessed value of the property to be
declared a di- lapidated structure, with separate values
established for the land and structure;

(3) determine the owner of record of the structure.

(b)(c) Prior to adopting a plan
pursuant to this section, the governing body shall call and hold a
hearing on the proposal. Notice of such hearing shall be published
at least once each week for two consecutive weeks in a newspaper of
general circulation within the municipality. Following such
hearing, or the continuation thereof, the governing body may adopt
such plan.

Sec. 11. K.S.A. 1995 Supp. 12-17,118 is hereby amended to read
as follows: 12-17,118. (a) Following adoption of a plan pursuant to
K.S.A. 1995 Supp. 12-17,117 and amendments thereto, the
governing body shall create a neighborhood revitalization fund to
finance the redevelopment of designated revitalization areas and
dilapidated structures and to pro- vide rebates authorized by
this section. Moneys may be budgeted and transferred to such fund
from any source which may be lawfully utilized for such purposes.
Any municipality may expend money from the general fund of such
municipality to accomplish the purposes of this act.

(b) Moneys credited to such fund from annually budgeted
transfers shall not be subject to the provisions of K.S.A. 79-2925
through 79-2937, and amendments thereto. In making the budget of
the municipality, the amounts credited to, and the amount on hand
in, such neighborhood revitalization fund and the amount expended
therefrom shall be shown thereon for the information of taxpayers.
Moneys in such fund may be invested in accordance with K.S.A.
10-131, and amendments thereto with the interest credited to the
fund.

(c) If the governing body determines that money which has been
credited to such fund or any part thereof is not needed for the
purposes for which so budgeted or transferred, the governing body
may transfer such amount not needed to the fund from which it came
and such re- transfer and expenditure shall be subject to the
provisions of K.S.A. 79- 2925 through 79-2937, and amendments
thereto.

(d) Any increment in ad valorem property taxes levied by the
munic- ipality resulting from improvements by a taxpayer to
property in a neigh- borhood revitalization area or to a
dilapidated structure may be credited to the fund for the
purpose of returning all or a part of the property increment to the
taxpayer in the form of a rebate. Applications for rebates shall be
submitted in the manner and subject to the conditions provided by
the revitalization plan adopted under K.S.A. 1995 Supp. 12-17,117
and amendments thereto. Upon approval of an application
received hereunder the municipality shall rebate
anyall or a part of incremental increases
in ad valorem property tax resulting from the improvements
within 30 days of payment by the taxpayer. Upon
payment of taxes by the taxpayer, the rebate must be made within 30
days after the next distribution date as specified in K.S.A.
12-1678a, and amendments thereto.

Sec./007006/K.S.A. 1995 Supp. 79-32,176 is hereby amended to
read as follows: 79-32,176. (a) Any resident individual taxpayer
who makes ex- penditures for the purpose of making all or any
portion of an existing facility accessible to individuals with a
disability, which facility is used as, or in connection with, such
taxpayer's principal dwelling or the principal dwelling of a
lineal ascendant or descendant, including construction of a
small barrier free living unit attached to such principal
dwelling, shall be entitled to claim a tax credit in an amount
equal to the applicable per- centage of such expenditures or
$3,000$9,000, whichever is less, against
the income tax liability imposed against such taxpayer pursuant to
article 32 of chapter 79 of the Kansas Statutes Annotated. Nothing
in this sub- section shall be deemed to prevent any such taxpayer
from claiming such credit: (1) For each principal dwelling in which
the taxpayer or lineal ascendant or descendant may reside,
or facility used in connection there- with; or (2) more than once,
but not more often than once every four- year period of time. The
applicable percentage of such expenditures el- igible for credit
shall be as set forth in the following schedule:

Taxpayers Kansas Adjusted % of expenditures

Gross Income eligible for
credit

$0 to $25,000.................................................. 100%

Over $25,000 but not over $30,000.............................. 90%

Over $30,000 but not over $35,000.............................. 80%

Over $35,000 but not over $40,000.............................. 70%

Over $40,000 but not over $45,000.............................. 60%

Over $45,000 but not over $55,000.............................. 50%

Over $55,000................................................... 0

Such tax credit shall be deducted from the taxpayer's income tax
liability for the taxable year in which the expenditures are made
by the taxpayer. If the amount of such tax credit exceeds the
taxpayer's income tax liability for such taxable year, the amount
thereof which exceeds such tax liability may be carried over for
deduction from the taxpayer's income tax liability in the next
succeeding taxable year or years until the total amount of the tax
credit has been deducted from tax liability, except that no such
tax credit shall be carried over for deduction after the fourth
taxable year succeeding the taxable year in which the expenditures
are made.

(b) Notwithstanding the provisions of subsection (a), if the
amount of the taxpayer's tax liability is less than
$750$2,250 in the first year in which the
credit is claimed under this section, an amount equal to the amount
by which 1/4 of the credit allowable under this section exceeds
such tax liability shall be refunded to the taxpayer and the amount
by which such credit exceeds such tax liability less the amount of
such refund may be carried over for the next three succeeding
taxable years. If the amount of the taxpayer's tax liability is
less than $750$2,250 in the second year in
which the credit is claimed under this section, an amount equal to
the amount by which 1/3 of the amount of the credit carried over
from the first taxable year exceeds such tax liability shall be
refunded to the taxpayer and the amount by which the amount of the
credit carried over from the first taxable year exceeds such tax
liability less the amount of such refund may be carried over for
the next two succeeding taxable years. If the amount of the
taxpayer's tax liability is less than $750$2,250 in the third year in which the credit is claimed
under this section, an amount equal to the amount by which 1/2 of
the amount carried over from the second taxable year exceeds such
tax liability shall be refunded to the taxpayer and the amount by
which the amount of the credit carried over from the second taxable
year exceeds such tax liability less the amount of such refund may
be carried over to the next succeeding taxable year. If the amount
of the credit carried over from the third taxable year exceeds the
taxpayer's income tax liability for such year, the amount thereof
which exceeds such tax liability shall be refunded to the
taxpayer.